Suppose that when the price of pickles decreases, Teddy increases his purchase of ketchup. To Teddy,
A) pickles and ketchup and substitutes.
B) pickles and ketchup are normal goods.
C) pickles and ketchup are complements.
D) pickles are a normal good and ketchup is an inferior good.
C
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When the government's expenditures exceed its tax revenues, the budget
A) has a deficit and the national debt is increasing. B) has a surplus and the national debt is increasing. C) is balanced and the national debt is increasing. D) has a deficit and the national debt is decreasing. E) None of the above because by law the government's expenditures cannot exceed its tax revenue.
Refer to the information provided in Figure 26.2 below to answer the question(s) that follow.
Figure 26.2Refer to Figure 26.2. This economy reaches capacity at
A. $300 billion. B. $600 billion. C. $900 billion. D. an output level that is indeterminate from this information because aggregate demand is not given.
Suppose real GDP grows at 7 percent per year and the population grows at 2 percent per year. How many years will it take for real GDP and real GDP per person to double?
What will be an ideal response?
Which national income account should be examined to discover trends in the after-tax income that people have to save and spend?
a. Gross domestic product (GDP) b. Gross national product (GNP) c. Disposable personal income (DI) d. National income (NI)